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1.Given the Production Function of a perfectly competitive firm, Q = 120L + 9L 2 - 0.5L 3 , where Q = Output and L

1.Given the Production Function of a perfectly competitive firm, Q = 120L + 9L² - 0.5L³, where Q = Output and L = labor input

a.At what value of L will Diminishing Returns take effect?

b.Calculate the range of values for labor over which stages I, II, and III occur?

c.Suppose that the wage rate is $60 and the price of output is $2 per unit.How many workers should the firm hire?

d.If demand forecasts predict an output level between 3500 and 3800 in the next decade, what would be your long-run strategy to optimize the resources of your company?

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